The following data are accumulated by Geddes Company in evaluating the purchase of $114,500 of equipment, having a four-year useful life: Year 11 Year 2 Year 3 Year 4 Net Income $40,000 24,000 12,000 (1,000) Net Cash Flow $68,000 52,000 39,000 27,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0,909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.6581 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Year 6% 10% 12% 15% 20% I 0.943 0.909 0.8931 0.870 0.833 2 0.890 0.826 0.797 0.256 0.094 . 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0,621 0.567 0.497 0.402 6 0.705 0.564 0.507 0,432 0.335 7 0.665 0.513 0.452 0.376 0.279 B 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.264 0.194 10 0.558 0.366 0.322 0.247 0.162 a. Assuring that the desired rate of return is 15%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 15%